Tip 19: Travel Tips to Save You Money1:19

Set a budget before heading overseas to avoid overspending and then relax.Source:Supplied

TRAVELLERS about to embark on an overseas journey need to set off with a budget in tow or risk returning with a holiday hangover.

Exclusive new data released from the Commonwealth Bank found 50 per cent of holiday makers admitted to embarking with no budget and more than half don’t bother converting currency until just before they leave — some even wait to do it when they’re already on holiday.

There are some simple ways to avoid getting stung with hefty conversion fees.Source:Supplied

CBA’s general manager of cards David Singh says many travellers are also unaware they could save themselves hundreds of dollars on travel insurance because they may already have it.

“Quite a few people travelling have a credit card that comes with travel insurance, but they do not take advantage of that,’’ he says.

“Some of them are spending $200 on travel insurance when their credit card would have given them the same benefit.”

He urges travellers to check this before taking out a separate policy.

Singh also says holiday-makers spend too much time focused on planning the trip and not enough on the costs once they have arrived. He says sketching out a budget before boarding the plane will help to avoid returning home with a hefty credit card bill.

Online travel comparison site, The Currency Shop’s director Justin Rampono, says it’s best to take a mix of payment methods before leaving but try to avoid converting money at the airport as you’ll probably be stung by lower currency conversion rates.

The Currency Shop’s director Justin Rampono urges travellers to organise their currency before they leave.Source:Supplied

“If you set a budget say for $4000 convert your money before you go, for example have $2000 on a card and $2000 in cash,’’ he says.

“That way, during your holiday you know where you sit, but still take your everyday debit and credit card just in case something goes wrong.

“Also use money on your card first because it’s expensive to convert currency back into Australian dollars from a card.”

Some travel cards have inactivity fees so if the money isn’t spent after a certain time frame it will dwindle away.